We take climate action by reducing our impact in line with a 1.50°C future. We are transforming to a carbon neutral business.
Our focus areas and targets for 2030*
Reducing emissions from our own operations by increasing efficiency and investing in renewable energy
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Greenhouse gas (GHG) emissions from own operations (Scope 1 and 2) reduced by 60% from a 2017 base year
Working with our suppliers and partners to reduce our impact in our value chain
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GHG emissions from transportation and distribution (Scope 3) reduced by 30% from a 2018 base year
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60% of our suppliers by spend covering purchased goods and services will have science-based targets by 2024
* The science-based targets have been approved by the Science Based Target initiative (SBTi).
Climate change affects all regions and businesses around the globe. We want to be part of the solution and meet our stakeholders’ expectations. In 2020, we set ourselves science-based targets to reduce greenhouse gas emissions.
We are committed to climate action by joining the UN Business Ambition for 1.5°C initiative, and our science-based targets have been approved by the Science Based Targets Initiative. Over the next year, we will lay out a time-bound climate plan including short-term targets consistent with the 1.5°C path.
Reducing emissions from our own operations
Our target for 2030 is to reduce our greenhouse gas emissions by 60% within our operations (Scope 1 and 2) from a 2017 base year.
In 2020, our Group-wide greenhouse gas emissions decreased by 28% compared to the previous year. Compared to the 2017 base year, we have reached a reduction of 44% as a result off the energy saving actions and investments in renewable energy. In 2020, total 63% of the electricity we purchased was from renewable sources.
We are using renewable electricity in Finland, Slovenia and Ireland and during 2020 we invested in renewable electricity in Poland. We are actively looking for opportunities to expand this to other locations. Moreover, we are exploring opportunities around renewable fuels. In our distribution center in Wall, New Jersey, U.S, we already have solar panels installed. In January 2020, we started to use solar energy at our Royal Copenhagen manufacturing unit in Thailand.
Energy efficiency
During 2020 we saved 6,856 MWh through different energy savings activities.
Energy consumption decreased 12% compared to the previous year. Total energy consumption was 901 TJ and 189 TJ of energy was from renewable sources. Decrease in energy consumption was achieved through energy saving actions and adjustments in production due to the COVID-19 impacts.
Energy savings consist of multiple actions in our manufacturing units and distribution centers. For example, many of our facilities have adopted LED lighting. Our Gerber manufacturing unit in Portland, Oregon, U.S, implemented Portland’s Energy Trust’s Strategic Energy Management Program to save electricity and improve efficiency and our Iittala glass manufacturing unit in Finland has saved natural gas by reusing their waste glass.
Since 2018, our energy savings actions have saved in total 15,177 MWh.
Engaging suppliers
We are committed to see to it that 60% of our suppliers by spend covering purchased goods and services will adhere to science-based targets set by 2024. We engage our raw material, component and finished goods suppliers to set science-based targets for their Scope 1 and 2 emissions at a minimum. We will provide our suppliers trainings on relevant topics related to reducing emissions and engaging them to set themselves science-based targets.
In 2020, we continued gathering energy and emissions data from our key finished goods suppliers, covering over half of the sourcing spend. We will continue to actively engage with our suppliers and logistics partners.
In addition to our own operations, we are reporting of emissions from transportation and business travel. We set the science-based target to reduce greenhouse gas emissions from transportation and distribution (Scope 3) by 30% by 2030 from a 2018 base year.
